A credit score of 744, according to credit reporting agency Experian, ranks as “Very Good.” Well on your way toward an “Exceptional” ranking, a “Very Good” rating means you’ve eclipsed the problems that characterize a “Poor” and “Fair” credit score.
Sometimes, a credit score can feel difficult to understand. A reflection of a borrower’s creditworthiness, your credit score indicates your capacity to pay back a loan once it is issued.
A “Very Good” credit score of 744 helps you unlock financial opportunities that include new loans and additional lines of credit. By contrast, lesser credit scores can mean more difficulty in securing loans as well as high interest rates and fees upon approval.
The first step toward improving a credit score of 744 is fully understanding it. Your credit score is a combination of five distinct financial factors:
- Credit age;
- Credit type;
- Credit history;
- Total debt;
- Payment history.
Together, these factors influence any fluctuations — positive or negative — in your overall score.
Often, consumers looking for greater control over their credit scores will sign up for free credit reports through a secure credit reporting program like AnnualCreditReport.com, which can help you track any recent changes to your credit score and take appropriate steps for future increases.
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Why Your Credit Score Is 744
While it’s impossible to identify the exact reasons why your credit score is 744, common influences on Very Good credit scores include a healthy payment history, low total debt, and matured credit age.
Healthy Payment History
As the most important factor in determining your credit standing, payment history accounts for 35% of the overall credit score equation. Establishing a healthy payment history goes a long way toward optimizing your account for regular credit score increases.
With a credit score of 744, you’ve likely already taken steps to build a healthy payment history. This means making complete payments toward credit balances before those payments are due.
While it might sound easy to improve your credit score through an established payment history, fully paying off debts is a practice that requires discipline. Often, it means making fewer impulse purchases, and reserving larger monthly percentages of your wages to put toward debt.
Look to further improve your credit score of 744 by continuing to make on-time payments that keep your credit debts low.
Low Total Debt
Total debt makes up 30% of the total credit score equation, and can help explain any recent credit score improvements or regressions. Individuals with a 744 credit score commonly maintain low overall levels of debt, paying off loan and credit card balances before they begin to accrue excessive interest.
Sometimes, higher levels of debt are unavoidable. For example, borrowers who have recently closed on a new home, or began payments on a new vehicle, will have more significant loans to repay. Quickly paying down these debts can help borrowers restore their credit scores to pre-loan levels, while further improving their payment history.
No matter your monthly income, you can continue to keep overall debts low. Look to pay off old debts as fast — or faster — than you accrue new debts, to keep balances manageable and prevent any financial trouble.
Matured Credit Age
Credit age is also another contributing factor that helps determine an overall credit score. A Very Good credit score of 744 means borrowers have likely maintained few credit cards or loans, avoiding unnecessary hard inquiries to consolidate debt into maturing credit lines.
There’s a naturally positive correlation between the age of a credit line, and its effect on credit age. Specifically, lenders like to see borrowers with established payment histories, from the same credit lines that have seen increased spending ceilings over time.
Rather than opening new credit cards and compromising the average age of your credit accounts, consider keeping credit consolidated into the same accounts, where credit age can positively impact your credit score of 744 over time.
What Can You Do With a 744 Credit Score?
A credit score of 744 is a major step toward securing your next personal or property loan, rewards-based credit card, or affordably-priced car insurance rate. While further credit score improvements might be necessary to secure the lowest-possible rates and fees, a Very Good credit score of 744 can help you obtain financing when you need it.
- Personal loans help borrowers address personal projects, everything from a destination honeymoon to an emergency medical expense. With a credit score of 744, you’ll be able to obtain a personal loan without much hassle. Depending on the lender, you might even be in line for the lowest available interest rates.
- Rewards-based credit cards allow users to earn hotel points, airline miles, cash back, and other major perks simply for spending money.
- A 744 credit score puts you in line to obtain one of the best rewards-based credit cards available today, whether you’re interested in 0% introductory financing or perks from your favorite retailers.
- Mortgage loans can help individuals with 744 credit scores secure property of all sizes. While you may not be in line for the best-available interest rates without an Exceptional credit score, you’ll still have no trouble being approved for a mortgage loan, from virtually any reputable lender.
- Car insurance premiums can quickly become expensive. Fortunately, a credit score of 744 will help you lock down affordable monthly car insurance premiums, though you’ll need further improvement to obtain the lowest-possible rates.
While the best rates and lowest fees are reserved for individuals with Exceptional credit scores, a credit score of 744 is still sufficient to help you acquire loans, new credit cards, and lines of credit without a lengthy approval process.
How to Improve a 744 Credit Score
A Very Good credit score of 744 indicates that you’re already avoiding the largest risks to your credit rating — bankruptcy, loans in default, excessive hard inquiries, and payments due to collections agencies.
Continue to make full, on-time payments toward balances to reduce overall debt, and limit new hard inquiries when possible, and your credit score is likely to benefit from future increases.
Lowering loan utilization can also help improve your credit score of 744. Even though high available spending thresholds can seem like an invitation to make large purchases, it’s in your best interest to keep loan utilization low. Low loan utilization ratios mean only spending a small percentage of available credit to benefit your credit score and avoid compromising total debt or payment history.
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